The dollar was able to climb back from losses seen after a string of weaker than expected data prints this morning. However the greenback is expected to remain on the defensive with traders continuing to eye the week’s economic docket.
For this presentation I take a look at Cable and build on our analysis from last week. I take a much broader view and work our way down to an intraday perspective. I hope you enjoy the video and good luck today! David Pegler
The Shorter the Time Frame Being Traded, the Greater the Influence Market Noise Will Have on the Chart.
The Aussie-Loonie pair has been one of the less-volatile currency pairs in 2011, trading in a narrow 800-pip range for the first 5-months of the year.
The CAD/JPY pair continues to bottleneck into a descending wedge formation that presents a unique scalping opportunity for intra-day traders. With limited event risk on the horizon, the scalp may continue to play out of the next few days.
The USDJPY has soared and is now testing the trendline that extends off of the April and May highs
Economic activity in Australia is expected to contract 1.1% in the first-quarter following the slew of natural disasters from earlier this year, and a dismal GDP report is likely to weigh on the exchange rate as the central bank maintains a cautious outlook for the region.
The correlation between the Dow Jones FXCM Dollar Index and the Dow Jones Industrial Average trades near record strength, underlining the USD’s sensitivity to broader financial market moves. The Dollar Index represents a strong proxy for trading the Dow and also crude oil and gold prices.
The US Dollar remains strongly correlated to equities and commodity prices, as the Dow Jones FXCM Dollar Index sees record correlations to the Dow Jones Industrial Average, NYMEX WTI Crude Oil contract prices, and spot gold exchange rates.
The Dow Jones-FXCM U.S. dollar index bounced back from a low of 9508.86 on Tuesday, but the greenback may continue to consolidate in the days ahead as it breaks out of the upward trending channel from earlier this month.
